Finance thread

[Joy]

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[createdtoworship]

The nice thing about brokers is that you can place something called a trailing stop. TD ameritrade offers this option. You can place a trailing stop on funds after you order them. Basically the stop sell order will trail your price upward, but not dowward. Upward it constantly resets itself, but as soon as price goes down it sets a counter to sell your order when a certain loss it experienced. For example for long term I like 20-40% trailing stops on higher volitility funds. That means that if market has gone up for years, and you have made a decent amount, you don't worry about losing 40% if you have gained hundreds for example. So I would place a 40% trailing stop. On general indexes I put a 10-20% stop. If I am unsure of direction I put a tighter stop like 5% or so.

I was just talking about someone who is into crypto, for one, they don't have trailing stops in crypto. Unless you use robin hood, and I am not even sure if they have it or not. But if a typical stock broker like tdameritrade or etrade sells crypto, then they will offer a trailing stop, but if you are using coinbase or binance or other crypto broker, most likely they won't offer it. At least the last time I checked they didn't. Also with stocks, you can short sell, or buy protective puts, or buy inverse funds. So you can technically make money going both ways pretty easily. But with crypto again you can't. So it's important to know the strengths and weaknesses of every investment strategy. Stock are optionable, crypto isn't. Options provide dozens of financial strategies. You can buy 2 year out options on well known stocks or more, and it will move roughly the same and the underlying stock or a little more. You can sell premium, you can purchase straddles and spreads. You can sell them as well for premium. Option alpha has the best tutorials on options. But I know someone who is very good at options and his various tactics are many, and mine are simply buying and selling. He can purchase, sell premium, buy or sell a spread, buy or sell a call or put. And to me that is much more varied that simply buying a crypto or futures or whatever. You can do well in whatever you learn well, but options are just like it sounds, they have lots of options to them. Stocks have those available.

 

[createdtoworship]

Market tanked today and yesterday from oil running out of storage.

 

[OldWiseGuy]

My rule is 'Use them, but pay the entire balance each month (thus avoiding interest charges)'.

And select a card with good 'rewards' on the things you buy the most.

 

[OldWiseGuy]

Absolutely. Not to mention that it’s pretty much a necessity these days to have a good credit score. Using a credit card responsibly—which, as you noted, means paying the balance every month—will achieve that.

You can actually achieve a higher credit score if you carry some loan balances and have a good payment record. Those who don't carry a cc balance are called 'deadbeats' by the cc companies. That said a high credit score is a reward for paying them interest, and an encouragement to borrow yet more money from them.

 

[createdtoworship]

Oil getting better and better, lets see it drop another 40% to it's multi decade lows!


(click to enlarge)

 

[createdtoworship]

Oil getting better and better, lets see it drop another 40% to it's multi decade lows!


(click to enlarge)
View attachment 275573

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[createdtoworship]

 

[createdtoworship]

Bitcoin went through some changes this month, in the halving of the mining perks. That makes bitcoin more rare, as it will be mined less. But is it enough to break it out of downward channel? The next few days will tell.

 

[createdtoworship]

also oil is doing better, not out of the woodworks yet but since it bottomed last month, it's slowly creaping up. If production cuts go ahead as scheduled, and if economy slowly opens this month and next, we will see a renewed interest in oil, and it will look good for oil holders. ( I am not recommending any financial advice, just sort of updating you guys on some news that is happening)

 

[createdtoworship]

"In terms of supply and demand, Standard Chartered are saying that the market will balance in July and then move into excess consumption. Furthermore, hedge funds have boosted their bullish perspective for WTI to the highest in a year. So, one long term move that makes sense is buying into oil majors now and forgetting about them for a few years. You would expect the smaller companies to be subsumed by the larger players (Shell, BP, Exxon, Chevron, Total etc) and once oil prices move higher they stand to gain even further. Forget about timing this and just jump in now. "

Oil markets have reasons to stabilise now

 

[createdtoworship]

(click to enlarge)- this is oil futures, or the price of a barrel of oil in futures market. Good for longterm trending.

 

[createdtoworship]

Up 42% on oil investments, for about a 2 week hold. I plan on holding if for a year or two.

(click to enlarge)

 

[createdtoworship]

Here are some more fundamentals on oil: (click on an image to zoom in)

 

[createdtoworship]

Hope everyone is doing well. Today I realized my 401k is back to what it was late 2019 before the crash, within a half percent or so. (recovered it's losses completely). I went in when VIX retraced 50%. Also on oil, am up 75%... Many a week or two ago were already saying avoid oil, it could crash. But I saw that it tapped on the bottom of a long term oil down trend, and that it would start heading to top of channel. Technical indicators, and fundamentals are more important than news. Things this cheap don't always happen, in fact your luck to get this opportunity twice a decade. I am doing everything I can to put all I have into oil. Oil is only about half of where my higher target is. That means that it's at 32 right now, my target 3 is about 75.42 dollars. So we have a long way to go up for late comers to the game. (if you have never invested before, go to TDAMERITRADE website, and start an account. They will ask you questions like, have you ever invested, and if you have done options or futures, say no to all of that, only say you want to do stocks. When they ask if a broker is in your house, say no (unless you are related to a broker and they live with you as a dependent or whatever), and just answer the rest of the questions honestly. The broker is not being nosey, those are SEC laws that they have to ask you that stuff. Eventually you will need to link your checking account routing number to your account so you can transfer. And your done. Stay up to date on how this develops, I will post any short term corrections in oil here. But if you do buy into oil, remember oil funds can drop 70% in a week, on bad news. So make sure you look up how to place a trailing stop% on your sell orders. So you buy into your fund, then immediately place a GTC sell order with a trailing stop, I am at 20% right now on UCO, but I will increase it as needed with volatility and as the fund gains. Trailing stop sell orders that are GTC(good till cancelled), are valid for up to a year. So take note of the date of expiration, it will tell you on the little drop down calendar. Mark that date and remember to place another sell order, Just make sure the order does not cancel w/o you knowing, and then your fund may drop and not sell. So a trailing stop is as such.....it follows the price upward and places a sell order (mine is at 20%), so it will follow the fund upward, then when it falls 20% it will sell. Right now I am in the money at 75%, so I can technically move my stop to my long term stop loss at 30%, but I am going to wait for a little while. I also watch key resistance levels as well.

 

[createdtoworship]

Oil sideways for a week or two?

I am not saying to sell oil, but some analysts are saying it will not go much higher. But that is not the story the technical indicators are saying. So again it's a war of fundamentals versus technicals. Here is a quote...

'Still, the data firm said that it sees oil stabilizing in the $30-$35 range, with “potential in the 40s” only later in the year “when and if demand strengthens and approaches pre-Covid-19 levels.”

By Nick Cunningham of Oilprice.com

Oil Is Unlikely To Go Much Higher | OilPrice.com


I noticed friday oil dropped on bad news, but only to fully recover before market open today. To me that is showing that the negative news is being thrown off. If negative news is not triggering sell offs, then that is a good bullish sign. Even if it continues sideways for a week or two we still hold. Make sure your new shares are incorporating in your stop loss (20 percent trailing stop). Later this year as we get more profit in this position I will move my trailing stop looser to a 30 percent.

 

[createdtoworship]

sold my oil for now, (swing trading) at a 75% gain for about 4 weeks. Went into volatility UVXY for a day trade. Then will transfer money out of my stock account into my roth IRA, for tax free gains. Not saying oil bull run is done, but just for a day or so I need to watch it.

 

[mama2one]

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[createdtoworship]

1) keep cars long time & save for next car/pay cash
2) pay extra on mortgage principle each mos to pay off in 15 yrs or less & save all that interest
3) if don't have the money, don't buy
4) reuse, repurpose, recycle, donate
5) buy at second hand shops/garage sales
6) marry a spouse who can fix anything, lol
7) use coupons & negotiate @ stores & with insurance, internet, any bill
husband has even negotiated @ big box stores with mgr
8) pay cash upfront to save on anything
i.e. we saved on orthodontist/other medical by pay in full

if someone is not used to stock trading I would recommend paying extra payment on house principle. All very good ideas. But stock trading, if you know what your doing is more profitable in long run than even owning a second house to rent. I calculated that in a prime example if someone bought at bottom of realestate in 2008 and held for ten years. They would have doubled their money roughly. But in stocks it is very easy to triple, or quadruple in that time period. In fact I nearly doubled my investment money in about a month on a good trade opportunity. But for most people, realestate is a very safe and tangeable asset. And for most people it is a perfect investment. So your right. But with a few tips really anyone can invest. It's not hard. But I ask that everyone pray to the Lord and ask what He desires for their life. If God wants you to use extra money on principle on a house, do it. If God says to invest it, do it. Ultimately God knows what is best for us. And to go against His will is never wise. For example if you invest, and become very successful as a young adult, that may sabatoge your life. That extra success, may give one pride and that may cause undo temptation for someone who is not aptly able to deal with the temptations that come with success. So again only God knows. I trading for five years and I do so poorly that my wife literally does not trust me with money to this date. She is slowly start to trust again as I have been profitable this last year pretty consistently. But it's not me, it's knowledge from God. I firmly believe after I rededicated my life to the Lord about a year and a half ago, that I cannot make a bad decision. I prayed about a fund yesterday, and logically it was a horrible decision. My trading expertise cringed. And I was like....Lord you know what you are doing. And I sold a fund and bought into volitility, which normally is a very bad decision. And it worked out for me. I not only saved about 7 percent loss on the fund I was in, but also gained about 3 %. So that is a net gain of about 10% simply from listening to the Lord. That is why I don't recommend funds anymore. Because you never know if one is at a place in their life where they are at that mature state with the Lord. They could be backslidden and all it takes is a little prosperity for them to totally forsake God and His will for their lives. But anyway I agree with everything you said and I am more than willing to help anyone learn to invest. But I won't do it on the open forum. IF you want to message me, I can send a few videos. It's about a hour or two of watching, but you can watch them over and over and over, and that is all the experience you need. But message me if your interested, if your husband is the person who does the investments, they may help him as well.

 

[mama2one]

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